In a slump this year, your wealth could take a hit. The problem of inflation troubles many people and they don't know how to deal with it. But don't worry, there are methods and strategies that, like magic, can help you hold on to your wealth and even increase it. Now let's take a look at them together.
01. Why did house prices fall
With technological advancements and population growth, the real estate market is undergoing profound changes. House prices may face the risk of falling in the future, which is mainly affected by the following factors:
First of all, the investment value of real estate in the future may not be as good as before, and the Chinese government has adopted a series of policies to control the excessive rise in housing prices, such as increasing land supply, implementing purchase restrictions, and raising loan interest rates. These policies have effectively curbed the rise in house prices and stabilized them. Although the government still adopts strict regulatory measures, the demand for real estate is increasing as urbanization continues to pour into cities.
This means that house prices may not rise significantly in the future, but they are also unlikely to fall sharply. Under the policy of insisting on housing instead of speculation, the investment value of real estate is almost nothing.
Second, the pandemic lasted for three years, causing many people to lose a stable source of income, making them re-examine their concept of buying a home. Many people realize that they do not have to be "house slaves", renting a house can also obtain the right of residence, while avoiding the impact of housing market fluctuations on themselves, so that they can accumulate more savings for emergencies.
As a result, large amounts of money are deposited in banks rather than being used in riskier and less liquid assets such as home purchases. This has led to a significant increase in the scale of bank deposits, which have increased by nearly 27 trillion yuan by the end of 2022.
Prior to this, annual new deposits usually did not exceed 10 trillion yuan, but in 2022, resident deposits alone have exceeded 17 trillion yuan. The expansion of bank deposits has also affected the supply and demand relationship in the real estate market, and many people choose to spend money on living expenses rather than buying houses, so that the value of properties will fall.
Although some first-tier cities and some second-tier cities may still maintain stable or even rising house prices, under the government's resolute implementation of the general policy of "housing without speculation", the opportunity for house speculation has been greatly reduced.
02. Why is money worthless.
Over the past three years, the impact of the pandemic has made ordinary people pay more attention to the importance of money. Special reasons have led many people to lose their job opportunities and therefore their source of income. This gives us a deep appreciation of the value of savings. Having a certain amount of reserve funds can ensure basic living when you lose your job and reduce your worries.
Therefore, after the epidemic, people cherish the meaning of saving more, will deposit excess funds in the bank, and treat consumption more cautiously, trying to avoid unnecessary expenditure.
However, due to the large number of people depositing money in banks, banks have adopted a policy of lowering interest rates in order to maintain normal operations. That is, the value of the deposit depreciates as interest rates fall and prices rise.
The government also regularly issues subsidies such as shopping vouchers to stimulate consumption, and rising prices have become the norm. There are 1-2 price increases per year, which means that the real purchasing power of coins is constantly decreasing.
03. 3 things that will appreciate in the future
Since property and cash are likely to depreciate, there are 3 things that will appreciate in the future
First, land is more valuable.
Although the property may depreciate, the land will not. Land is a scarce resource with multiple uses. It can be used in agriculture, breeding, construction and development, etc., all of which can bring great returns.
As population growth and urbanization accelerate, land demand will continue to rise. Therefore, people who own land in the future may be richer than those who own property.
2. Gold and silver jewelry
Gold and silver jewelry has always been a highly regarded traditional way of storing wealth.
Whether it is a wedding ceremony or gift-giving, gold and silver jewelry is always popular.
They are not only beautiful, but also contain real value.
Here are a few advantages and prospects of gold and silver jewelry:
- Value preservation: Gold and silver, as precious metals, can usually preserve their value.
Especially in times of unstable economic conditions or inflation, gold and silver prices tend to rise.
Therefore, investing in gold and silver jewelry is expected to preserve value or even make a profit.
- Liquidity: Gold and silver jewelry has high liquidity and can be bought, sold and exchanged at any time.
This makes gold and silver jewellery a flexible investment that investors can operate according to market conditions.
- Traditional values: Gold and silver jewelry has important symbolic meanings in many cultures, such as weddings and family heirlooms.
This increases the sentimental value and traditional cultural value of gold and silver jewelry, further enhancing its investment attractiveness.
For example, in recent years, the price of gold has hit record highs, making people who invest in gold jewellery reap substantial returns.
At the same time, silver jewelry has also become a target for investors due to its relatively low price and wide range of uses.
3. Rare earth metals
Rare earth metals, a rare and finite resource, usually appreciate in value over time. Compared to property and cash, it has a strong resilience to falls and stands out from market volatility.
Investing in rare earth metals also helps diversify investments and reduce risk. Investing wealth in rare earth metals and other financial products can help reduce overall portfolio risk and provide additional protection, especially in times of market turmoil.
The storage and trading of rare earth metals is relatively convenient and the liquidity is high. Rare earth metals are easier to trade across borders than other assets, providing investors with more options and opportunities to manage their wealth more flexibly.
Write to the end:
In an uncertain future, we need to actively pursue value-added opportunities, continuous learning and adaptation. Whether choosing gold and silver as a wealth reserve, or land, rare earth metals require us to be open-minded, innovative and enterprising. Grasp the future value-added trend, integrate our wisdom and efforts into social development, and believe that we will find more hopes and opportunities on the road ahead. Let us meet the future together and create a better tomorrow!